Milestone China Agrees to Annual Guaranteed Minimums Following CFDA Marketing Clearance
The Board of Directors of Milestone Medical Inc. (WAR: MMD, the Company, the Issuer) today announced that it has entered into a distribution agreement with Milestone China for its intra-articular instrument to be used in the treatment of osteoarthritis. Milestone China will oversee sales and distribution of the instrument in China and other parts of Asia. Under the agreement, Milestone China has agreed to certain minimum purchases annually following CFDA marketing clearance as a condition of the distribution agreement. Year one minimum purchase is 300 instruments; year two is 600 instruments and year three is 800 instruments. CFDA marketing clearance can be sought only following FDA marketing clearance in the United States. Although companies have no control over the regulatory process, Milestone currently believes it will have approval by the end of the second quarter of 2015.
Milestone China is a joint venture between Milestone Scientific and a team headed by a senior healthcare executive from China. The focus of Milestone China is to supply and distribute medical and dental instruments, and disposables to China and other Asian markets.
Lidong Zhang, Chief Executive Officer of Milestone China, previously held senior executive positions with leading healthcare distribution companies in China, including President of China National Medicines Corporation, Ltd. (CNMC), a billion dollar distributor of medical products in China. He also served as President of China National Pharmaceutical Logistics Co. Ltd, and Vice President of China National Bio-tech Group. He also served as Chairman of National Medicines Prospect Dentech (Beijing) Co. Ltd.
Lidong Zhang, Chief Executive Officer of Milestone China, commented, “Adding this unique precision instrument to our product portfolio to enhance the treatment options and comfort level of those suffering from osteoarthritis and other joint pain is very gratifying. Our team’s experience in the Chinese marketplace combined with the benefits for both patients and medical practitioners make this a favorable agreement for all parties. We look forward to commencing commercial sales upon CFDA marketing clearance.”
Leonard Osser, Chief Executive Officer of Milestone Medical, the Issuer, added, "Having access to a sizable market such as China with a proven team of marketing and sales professionals is an important step forward for Milestone Scientific as we prepare our commercial launch. The fact that Milestone China has committed to guaranteed minimum purchases upon CFDA approval is further validation of our technology.”
The Company decided to issue the report about signing the above agreement, because the Issuer considers it to be significant due to its impact on the business, property and financial situation of the Company and its growth outlook.
Legal basis: Section 3.2 point 2) of the Exhibit 3 to the Alternate Trading System Rules “Current and periodical Information in the Alternative Trading System on the NewConnect Market”.
Osoby reprezentujące spółkę:
Joseph D'Agostino - CFO